What is computational finance?

Answer:
Computational finance is a field which draws on many

different disciplines, such as artificial and computational intelligence, applied mathematics, computational simulations, and others. This field, which is also known as financial engineering, provides guidelines for decisions regarding hedging, trading, and investment. Computational finance also provides a way to facilitate risk management in these areas.

Workers in computational finance are known as quantitative analysts, or “quants” for short. These people work with risk management, statistical arbitrage, derivatives pricing, and any other mathematical application in finance. The field of computational finance has been around, at least in the United States, since the early 1930s. It began with investors using mathematics to set pricing for stocks and bonds.